The Company warrants the work for one
year after completion of a project. Reserve for warranty work is established in the amount of 1% of sales for the previous
twelve months. As of September 30, 2012 and June 30, 2012, the balances of warranty liability were $6,545 and $7,034,
respectively. Warranty expenses for the three months ended September 30, 2012 and 2011, were -$34 and $4,224, respectively,
which are included in the Cost of revenues on the Statements of Operations.